I have a working Zabbix 1.8.2 server collecting data for our office and our colo facility. However the link between the colo and office is flaky. What I'm trying to do is setup a proxy on the colo side to have a 1 hour cache and relay the data to our primary server at the office. Our zabbix server is compiled from source and uses a mysql database

I've followed the instructions found in the zabbix documentation to compile the proxy using a sqlite3 database. I add the proxy to zabbix under Administration->DM->Proxies. The zabbix server "sees" the proxy because the "last seen" field is always under 60s. However when I assign a colo host to the proxy I stop receiving data from it. The colo host's zabbix_agentd.log file says this:

P.S. The SQLite database on the zabbix proxy never gets any data written to it, it is identical to when I created it from the blank schema in zabbix-1.8.2/create/schema. (Yes I've checked the permissions)

if you are using active items, you must set proxy ip as the first entry in the agentd daemon config file, "Server" directive. if its passive checks, still, proxy ip must be in the "Server" directive so that connections from it are allowed.